US Securities and Exchange Commission Commissioner Caroline Crenshaw has released a misunderstanding opinion on the SEC’s recent stance that Memecoins are not security.
According to the Commissioner in February. 27 statementMemecoins can satisfy the conditions of the Howey test of profit from others management efforts due to coordination between developer teams and promoters.
The commissioner added that most, if not all, cryptocurrencies can be defined as Memecoins Under the recent SEC guidereleased on the same day. In this guidance, the agency said memecoins represent online social trends with speculating value and high volatility – and not security. Commissioner Crenshaw, however, has a different perspective:
“The statement now paints coin memes as cultural projects whose purpose is hobby and social interaction. The fact is that coin memes, like any financial product, are issued to make money.”
Memecoins came to the sharp focus following a lot of Scams with high profilehacks and even the memecoin president launches it Threat the long -term flexibility of the sector and invite the investigation from state officials.
The official action of the Trump token price dropped significantly shortly after its launch. Source: Tradingview
Related: Solana’s Token Minting Frenzy loses steam while Memecoins
US regulators and lawmakers have tried to reign in Memecoins
Following The launch of the memecoin of US president Donald TrumpMany Democrat lawmakers, including Elizabeth Warren, including call for an investigation in potential violations of the president’s token ethics.
On February 27, California member Sam Liccardo announced that House Democrats is preparing Ban Presidential Memecoins.
The proposed bill, titled “The Modern Emoluments and Malfeasance Enforcement (MEME) Act,” will prohibit US lawmakers from sponsoring, release or endorsing any digital ownership.
In addition, spouses and dependents of US representatives, the President, Vice President and Senior Executive Branch Officials are also prohibited from issuing or sponsoring memecoins under the bill.
Attorney Elizabeth Davis, former Chief Attorney at the Commodity Futures Trading Commission (CFTC), recently argued that Memecoins CFTC should be regulated.
Davis told Cointelegraph that if the regulator of the goods was given a crypto administration regulation, then there was a strong possibility that memecoins would be included in their Purview.
The lawyer also expressed confidence that comprehensive memecoin regulations will be established in the United States next year – the end of the ambiguity of regulation surrounding society tokens.
Magazine: Memecoins: infidelity of crypto goals … or its real purpose?
